Costing Cloud Data migrations

One statement that gave me pause when talking to Zoho recently was its belief that it had to run its own datacentres, partly because public cloud is so expensive – if there’s one thing we always hear, it is that AWS etc is cheap.

A moment’s thought at the time told me that for the Zoho business model, public cloud probably would be impossibly expensive. Now here’s confirmation that public cloud can be expensive in practice, from The Register reporting a NASA audit.

An interesting story, I thought – and the analysis of what went wrong is instructive. Currently, NASA operates Distributed Active Archive Centers (DAACs) and is moving it all to the Cloud (AWS). Unfortunately, the transfer of petabytes of data into the Cloud won’t be instantaneous, so for some (considerable?) time, NASA could expect to pay for its DAACs as well as for Cloud storage.

But it is worse than that, and costs are much higher than NASA anticipated, according to El Reg’s reporting of the audit: “Specifically, the agency faces the possibility of substantial cost increases for data egress from the cloud,” the Inspector General’s Office wrote, explaining that today NASA doesn’t incur extra costs when users access data from its DAACs. “However, when end users download data from Earthdata Cloud, the agency, not the user, will be charged every time data is egressed. That means ESDIS [Earth Science Data and Information System] wearing cloud egress costs. Ultimately, ESDIS will be responsible for both cloud costs, including egress charges, and the costs to operate the 12 DAACS.”

I asked Paul Bevan, Bloor’s Research Director: IT Infrastructure what he thought of this issue.

“The Cloud costs issue is generating a lot of interest at the moment”, he replied, “it comes in two parts: “can I assess the likely costs given the nature of the apps I am putting into the cloud”; and “can I or am I monitoring the usage of cloud instances (people tend to spin up servers and provision storage and leave them running even though they aren’t being used)”.

The first question used to be addressed by consultants in fairly costly cloud migration projects assessing what the likely costs would be,” he continued, “but now, we are seeing ArchOps tool vendors using the huge amounts of app and infrastructure performance data now available, to predict usage and therefore costs. Virtana (formerly Virtual Instruments) has a tool called Cloud Wisdom that does exactly that. Such vendors are now addressing the orchestration and management of cloud infrastructures more generally, in order to monitor usage/costs more closely.”

On the specific issue of Cloud data egress cost, Paul points out that OVH, the French Cloud company, claims to be the largest European Cloud provider and does not have any ingress or egress charges. It also has a global footprint of data centres. Type OVH into the search bar on the Bloor home page and you will see the four articles he’s written about OVH.

So, there are tools that NASA could have used to cost its Cloud migration better and also the possibility of avoiding egress costs altogether. That is worrying for the American taxpayer, but I wonder how many other organisations aren’t costing Cloud migrations properly? There will always be applications that simply aren’t right for the Cloud or not right yet, and there are now more tools and more examples to guide users new to the cloud before they jump in and make an expensive mistake. One would think that people would model costs for moving to the cloud as carefully as they would cost out a new datacentre, but perhaps not always. And in the NASA case here, the old joke business model: “FREE ENTRY! exit $99.99” – may not be so funny after all.

David Norfolk

My current main client is Bloor Research International, where I am Practice Leader with responsibility for Development and Governance. I am also Executive Editor (on a freelance basis) for Croner's IT Policy and Procedures (a part-work on IT policies). I am also on the committee of the BCS Configuration Management Specialist Group (BCS-CMSG). I became Associate Editor with The Register online magazine – a courtesy title as I write on a freelance basis – in 2005. Register Developer, a spin-off title, started at the end of 2005, and I was launch editor for this (with Martin Banks). I helped plan, document and photograph the CMMI Made Practical conference at the IoD, London in 2005 (http://ww.cmminews.com). I have also written many research reports including one on IT Governance for Thorogood. I was freelance Co-Editor (and part owner) of Application Development Advisor (a magazine, www.appdevadvisor.co.uk, now defunct) for several years. Before I became a journalist in 1992, I worked for Swiss Bank Corporation (SBC). At various times I was responsible for Systems Development Method for the London operation, the Technical Risk Management framework in Internal Control, and was Network Manager for Corporate group. I carried out a major risk evaluation for PC systems connecting across the Bank’s perimeter to external systems and prioritised major security issues for resolution by the Bank’s top management in London. I also formulated a Security Policy for London Branch and designed a secure NetWare network for the Personnel Dept. Before 1988 I was an Advisory Systems Engineer in Bank of America, Croydon in database administration (DBA). on COBOL-based IMS business systems. Before 1982, I worked in the Australian Public Service, first as a DBA in the Dept of Health (responsible for IMS mainframe systems) and latterly as a Senior Rserach Officer 2 in the Bureau of Transport Economics. Specialties: I have the ability to extract the essence of significant technical developments and present it for general consumption, at various levels, without compromising the underlying technical truth.

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